Presentation Transcript

1. Incentive Legislation Campaign

   Protecting the Right to Motivate
2. The Immediate Threat The legislative threats facing our industry have never been greater… As the U.S. government positions for aggressive tax reform and debt reduction, there are powerful forces in Washington that threaten our most effective business tool for creating a safer workplace, shaping corporate culture, and building employee loyalty and engagement.... the reward solutions you use to support safety and length-of-service (LOS) programs.
3. Our Tax Provision 274(j) supports safety and length of service (LOS) programs by providing tax deductions to employers and tax exclusions to employees. An annual deduction of up to $400 per employee for safety or LOS achievement awards made outside of a qualified plan designed for providing such rewards An annual deduction of up to $1,600 per employee for safety or LOS achievement awards provided as the result of a qualified plan Tax benefit encourages adoption… …incentives drive engagement.
4. The Role of Motivation Safety Awards Promote and support education, training, communication, performance, wellness, and retention 86% of accidents are triggered by unsafe behavior OSHA supports well designed programs The majority of accidents are preventable Service Awards Build and increase relationships, retention, morale, and teamwork. Engaged employees = engaged companies 27% higher profits 50% higher sales 50% higher customer loyalty 38% higher productivity 20% more revenue per employee 16% improvement in market share
5. The Business Impact If you supply awards, sell to companies that run safety or LOS programs, or deliver safety or service award programs, your business is at RISK! If 274(j) legislation is eliminated: Employees are taxed for awards - they may have to sell the award to pay for the tax or not accept the award at all. If employers have to “gross up” the tax, costs go up and employers may be reluctant to offer awards. If these programs go away: The economy is negatively impacted – increase in job lost time, employee recruitment, accidents, workers comp rates, and project costs. The award supply chain will be negatively impacted. Businesses pull back on their investment in these programs. Companies who design these programs may cease to exist. Requests to buy products from manufacturers, reps and channel partners will be reduced. (NOTE: not only highlight what could happen in future but also highlight what accomplishments have been realized in the past)
6. The IF involvement The Incentive Federation Inc. is the organization founded to promote, protect and research the incentive field. The Incentive Legislation Campaign (ILC) is the legislative arm. A distinguished panel from the Incentive Federation's Board of Directors is working aggressively to… Monitor legislation that could affect the use of incentive, recognition and related promotional programs Establish a more robust relationship with Members of Congress and lawmakers to address industry issues Raise awareness of our industry's significant role in improving business productivity, creating jobs and demonstrating that recognition and reward solutions are powerful and effective business tools Ensure that we are fully aware of opportunities and threats for our business/industry Protect our collective right to motivate
7. Proven Success Federation Achievements since its inception in 1984… Recognition and safety programs The Federation played an important role in the enactment of Internal Revenue Code section 274(j), which provides a significant tax benefit for the use of merchandise rewards in safety and length-of-service programs, as part of the Tax Reform Act of 1986. OSHA regulations When OSHA stated in its proposed ergonomics rule that safety incentives do not work and lead to the under reporting of injuries, the Federation fought to ensure that OSHA would not oppose properly implemented safety programs when it adopted the final ergonomics rule in 2000.  The Federation convinced OSHA that there was no empirical evidence that safety programs led to the under reporting of injuries and that studies showed well-designed safety programs would lead to the reduction of workplace injuries. 
8. Proven Success Protection of bank incentives and premiums (1984-1985) When federal regulators sought to ban the use of premiums and incentives by financial institutions, the Federation protected this important motivational tool.  Through its efforts, federal regulators came to understand that financial institutions had important, legitimate uses for premiums and incentives and should not be banned or curbed. Protection of sweepstakes and contests (ongoing) The Federation has helped state and federal regulators understand that sweepstakes and contests should not be saddled with onerous and unfair requirements. Meetings with Members of Congress (ongoing) Over 100 meetings held with influential Members of Congress (Senate and Congress) and the Treasury Department. These include numerous members of the Senate Finance and House Ways & Means Committees.
9. What does the future hold? Without your ongoing support we can’t be heard! Though currently lobbying for support of 274(j), our industry’s only tax provision the ILC is committed to maintaining a vigilant presence in Washington DC to ward off other potential threats and seize positive opportunities that could impact our industry… Sale Force Incentive Awards Business Gifts Consumer Promotions Wellness Programs Travel Awards Safeguard against fraud Etc…
10. RC Threats & Opportunities Threats Service and safety awards 274(j) Positive opportunities Tax benefit for wellness incentive programs
11. PIC Threats & Opportunities Threats Service and safety awards 274(j) General concern for government regulations and legislation that impact business Positive opportunities Tax benefit for wellness incentive programs To mitigate the risks associated with this government regulation trends a continued presence in DC is required and educating Members of Congress about our industry is essential.
12. IGCC Threats & Opportunities Threats Service & safety awards 274(j) Safeguard against gift card fraud General concern for government regulations and legislation that impact business Positive opportunities Append 274(j) to incorporate tax benefit for gift card awards Tax benefit for wellness incentive programs To mitigate the risks associated with this government regulation trends a continued presence in DC is required and educating Members of Congress about our industry is essential.
13. How can you help? As leaders in this industry, it is time for all of us to take on the responsibility of protecting our industry not only today but into the future… Financial support Ideas and resources Local mobilization
14. Financial Investment $150,000 is needed annually to sustain our presence in Washington Lobbyists DC Assemblies (travel not included) PR Outreach Promotional Material Administration
15. Resources Lisa Lister ILC Task Force Almo Dave Peer ILC Task Force Hinda 773-890-5900 Karen Renk Chair, IF Board of Directors AE Inc. 630-369-7780 Mike Self ILC Task Force Special Markets Associates 623-474-3957 Michelle Smith IF Board of Directors/Legislative Chair OC Tanner 626-796-5544 Rick Blabolil IF Board of Directors Marketing Innovators Heidi Chatfield Chair, IF/ILC Task Force All Star Incentive Marketing 508-347-8820 Donna Chrobak ILC Task Force DCI Incentives 770-316-9398 George Delta IF Legal Counsel Delta Law xxx-xxx-xxxx Brian Galonek Chair IF/ILC Fundraising All Star Incentive Marketing 508-347-8810
16. Resources Visit www.incentivefederation.org